Managing The Products Life Cycle Essay

For instance, in the Low End market, other groups refrained from updating products each year, once this was identified we too, stopped advancing our products to save money. Since the entire market held their products constant sales did not decline.

For example, factory production declines from weeks 10-17 because of low margins. Factories cannot produce normally because of the cost constraints facing them. The positive value seen at week 18 means that factories have addressed cost issues hence can meet market demand. A positive trend emerges during week 18 as seen from factory with 1unit and 9units for distributor. The value of -24units from retailers in the same week means that factories can produce but remain cautious about meeting previous production

Trends and developments in the marketplace – Customer demand and product and services sales trends

* Increase in sales and decrease in promotional costs for the introduction of the new product

Promotion: promoting product to target market which may focus on acquiring new customers or retaining customers.

The products that people buy are promoted to bring in new consumers. Promotion requires an organization to have a lot of time. Also a promotion should be clear and t o the point.

The company has used the element of networking with the prospective marketers and ambassadors to market their products. The company has also used direct sales through fundraising to increase prospect of gaining more market.

(decreases) (Lev, 1974, p.628). At the same time, the company incurred a 3 percent decrease in sales, which caused a 21 percent decline in profits (Edmonds, Tsay, & Olds, 2011, p. 147). This demonstrates a change in sales,

The behavior described in the Headline on p. 131 is one in which numerous firms have entered the marketplace and driven the price of the product down. The graph below illustrates what happens to the market supply curve as new firms enter the industry. The curve shifts to the right which illustrates a drop in price.

manufacturing process, the iron from the blast furnace is converted to steel in a basic oxygen

Economic: The industry’s performance is highly tied in with the economy. A weak economy will mean weak sales.

The sales of high-grade products will go down first because these products are mostly made for high-income customers. It is difficult for us to get profit from such products as kitchen cupboard and equipment with sophisticated design. The demand of our products is liable to be decreased, especially the luxury or customized products. Obviously, it can be seen that it is a challenge to keep our sales stable.

The demand is higher than the supply as told by the industry growth. For the maturity stage, the number of competitors is very big and this make prices drop down and be a big threat for future profitability. During the decline stage, as the capacity exceeds supply, the power of the buyers increases from it. This is because the market environment is always changing with time, so the industry must follow this life cycle to keep up with others. This makes make the evolution of the industry

Competition: As time goes on firms drop out until no one is producing the product.

This period is characterized by a growth in sales of the product with a favorable word of mouth that brings new customers. New competitors are also entering the market, attracted by the possibilities of development (which may even be beneficial for the product).